CPI-Vivint Verdict Seen as Industry Turning Point for Door-to-Door Sales Ethics

Types : In the News

A federal appeals court upheld a $189 million verdict in favor of CPI Security Systems, prompting industry observers to call for stronger oversight of door-to-door sales practices and ethical accountability across the security sector.

This week’s appellate court ruling affirming a $189 million judgment in favor of CPI Security Systems against Vivint Smart Home is being viewed as a pivotal moment for the electronic security industry, particularly in how companies approach door-to-door sales and customer acquisition practices.

Timothy J. Pastore, a former federal prosecutor and “Legal Brief” columnist for Security Business magazine, said the Fourth Circuit’s decision is a strong message to the broader electronic security industry.

“The electronic security industry is on notice that the use of deception to acquire customer accounts may have severe consequences,” Pastore said. “Here, the punitive damages were more substantial than the direct and consequential damages combined. That sends a loud and clear message that the jury and now an appellate court will not tolerate dishonest sales tactics.”

Pastore emphasized that companies need to balance growth targets with legal and ethical oversight.

“Security firms must invest in training for their sales staff — instructing them of the perils of deceptive sales practices,” he said. “While short-term gain may be achieved by poaching customers, the long-term consequences can be significant — as Vivint has painfully learned.”